It is finally out — the Union budget by the Narendra Modi government in India. And what does it offer? A sense of deja vu. It mirrors the sentiment of the railway budget presented on Tuesday, that was largely big on ambition and levitated off the ground realities in many instances. From the cheer prompted by a higher ceiling on tax exemptions for the salaried class and senior citizens, as well as on some long-term financial savings plans — overt populist moves — when the budget proposals move into other areas, they mostly fly low over the ground.
Many of the proposals sound more like the contents of an election manifesto than a powerful package of economic revival. Building war memorials and museums, expanding educational institutions, setting up sports foundations etc take up a large itemisation of the budget while the big-ticket issue — fixing India’s fiscal deficit — remains as is. The Modi budget (for that is what it is) revels in tremendous detail, some of it good in intent. That includes banking reforms, education, better infrastructure and expanded manufacturing and start-up opportunities, which could lead to more jobs. Attention to some critical micro issues such as improving rural roads, providing better sanitation, clean drinking water and 24x7 power supply for villages also find a place.
However, the most prominent thread in this weave is Modi’s penchant for privatisation. Foreign Direct Investment now seems to be the magic ploy to correct all malfunctions in India. From defence to insurance to gas lines and railways, the Modi government, come its turn, is in a deeply serenading mood. The bellwether to BJP’s corporate love cannot get any clearer than this. It remains to be seen how this approach segues India’s baseline growth. Proposals to set up 100 smart cities, six textile manufacturing hubs, seven industrial cities will be the incubators to test the real worth of Modi-nomics.
Finally, the budget pulls off the terrific paradox that sweating the small stuff can also give you a clue to the big picture — Rs1 billion (Dh61,020,380) allocation for women’s safety versus Rs2 billion for a gigantic statue of a statesman.
